Investors often overlook SEC filings, and it is the job of the 10Q Detective to dig through businesses’ 8-K and 10-Q SEC filings, looking for financial statement ‘soft spots,'(depreciation policies, warranty reserves, and restructuring charges, etc.)that may materially impact Quality of Earnings.

Management believes its successful strike at Flatrock — discovered in mid-2007 and brought online the following year — demonstrates the validity of its “deep gas” model.

Drilling almost four miles down, producing wells pumped out, on average, 272 MMcfe/d gross in the fourth quarter of 2009 ( 25 percent working interest). But by December 2010, production from prolific Flatrock gas field operations had fallen to 165 MMcfe/d (31MMcfe/d net to McMoran), due to persistent wellbore and remedial work-over issues.

In a recent interview with Oil & Gas Financial Journal, John Schiller, CEO of minority partner XX I (EXXI-$32.25), downplayed technological complexities involved in spudding sights like Blackbeard or Davy Jones, preferring to focus on reservoir potentials, improvements in seismic imaging and assessment tools, and past successes, such as Flatrock. He admitted, nonetheless, that ultra-deep drilling wasn’t for the “faint-hearted” and was capital-intensive.

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About Me

Prior to founding the 10Q Detective, I held equity analyst positions with three brokerage firms and published the investment newsletter e-Growth Profit Letter - dedicated to uncovering companies with innovative, proprietary technologies in a range of industries. My work has been published in The Dick Davis Digest, The Bull & Bear Financial Report, BusinessWeek, CBS Interactive, Forbes, Kiplingers Personal Finance, MSN Money, TheStreet.com, 24/7 Wall Street, The Wall St. Journal, The International Herald Tribune, and Investors Business Daily.
The 10Q Detective is recommended as a 'Must-Read' money blog in Kiplingers (Oct. 2006 & May 2008), Washington Post (May 2009); a 'Best of Financial Blog' by BusinessWeek (Feb. 2007 & April 2008),a 'Smart Stop' by The Journal of Accountancy (March 2008); 'Top 25' by Time magazine, a 'Top 50 Money Blog' by CurrencyTrading.net (April 2008); and, a 2011 LexisNexis Business Law Blog Nominee.